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TMI Blog2015 (4) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore of the view that it would be just and appropriate to direct the TPO/AO to consider the comparability of these two companies. Higher rate of depreciation of comparable companies - the limited request of assessee is to allow proper adjustments on account of rates of depreciation adopted by the comparable companies - HELD THAT:- In our view, the request of the assessee is proper and deserves to be accepted in the light of the decision of the Pune Bench cited by the ld. counsel for the assessee supra. We accordingly direct the TPO to allow appropriate adjustments while working out the margins of the assessee as well as comparable cases. - IT(TP)A No. 652/Bang/2012 - - - Dated:- 10-4-2015 - Shri N.V. Vasudevan, Judicial Member A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rable companies are not clear. The Transfer Pricing Officer has concluded that since correct and complete data of all direct and indirect costs that have gone into cost of production, in the case of comparables are not available, the Cost Plus method is to be rejected. Instead, the TPO proposed the adoption of Transaction Net Margin Method (TNMM) and in the process relied on the average percentage of net margin to cost of 12 companies selected as comparables by him. A letter dated 03-11-2006 was sent to the assessee, proposing the adoption of the TNMM. The assessee vide its letter dated 25- 11-2006 objected in detail, both to the method sought to be adopted as well as the methodology adopted by the TPO. The assessee had also objected to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Amex Information Technologies Ltd. 19.47% 2. Federal Technologies Ltd. 39.43% 3. Gebbs Infotech Ltd. 32.29% 4. Lifetree Convergence Ltd. 7.86% 5. Newgen Software Technologies Ltd. - 14.04% 6. Synergy Log-in Systems Ltd. 6.27% 7. Thirdware Solution Ltd. 60.50% 8. VJIL Consulting Ltd. 6.99% 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The annual report of these two companies were also furnished by the assessee before the CIT(Appeals). A write up giving business description of the above two comparable companies which was filed by the Assessee before CIT(A) is at page 369 of the Assessee s paper book. 9. In the impugned order of the CIT(Appeals), the above submissions were not considered by the CIT(Appeals) at all. We are therefore of the view that it would be just and appropriate to direct the TPO/AO to consider the comparability of these two companies. We hold and direct accordingly. 10. The next request made on behalf of the assessee was that the assessee provided depreciation at a higher rate than what is prescribed under the Income-tax Act, 1961, whereas the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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